Selling FIA's

[Winter_123]

Okay Winter, I would say the wildest Condi picture by far....

Love it!

As it should be

 

[midwestbroker]

Ahh...that makes sense winter.

That is the thing about this product. Some love them some hate them.

Questions:

If the annuitant passes, what happens to the money if they never took any payments? Does the bene get the money and how is it treated (taxed)?

What if they took payments?

 

[bluemarlin08]

Money is taxed as income in respect of a decedant, ordinary income tax, no cap gains.

 

[midwestbroker]

Thanks blue

Example:

Client starts with $100,000 in an annuity. They have it on the books for about 3 years and now have $110,000. They pass and Jr gets the money.

The entire $110,000 is taxed as income? Or just the $10,000?

 

[bluemarlin08]

Just the gain, 10k.

 

[midwestbroker]

Thanks for clearing that up.

I will post after my training Monday with what they say and such.

 

[Mr. Bill]

Watch out for bonus products, as the bonus may not go to beneficiary, it depends on the product itself.

 

[bluemarlin08]

Ask them what to expect in cap rates and particicpation rates after the initial guarantee period, usually a year. Ask for historical data on renewal rates compared to initial rates. Back test the product yourself and compare rates.

 

[slushhhpuppie]

I only use one FIA product line.

0% spread, 100% participation & monthly index earning caps all north of 2%.

Guaranteed principal protection with the potential to earn interest from index performance.

That should be the only pitch you need.

 

[Mr. Bill]

Spit it out slushie, what company?